What Would the Eurozone Look Like Without Greece?

J Sindreu, M Ovaska & C Tovar/wsj:
11-07-2015

Greece missed a loan payment of €1.55 billion ($1.7 billion) to the IMF on June 30. Pending on July 20 are further payments totaling almost €3.5 billion to the European Central Bank and other institutions. If it misses it, Greece could end up leaving the eurozone, which would have myriad effects, some quite unexpected.

Population

There would be 3.2% fewer people, but they would be younger on average. The mean age in the eurozone is 39.6 years, while in Greece it’s 42.3.

Economy

The eurozone would lose only 1.8% of its economic output. GDP per capita would actually rise 1.5%.

Debt

If Greece were to exit the eurozone, government debt in the single currency area overall would be reduced by 3.4%, but private debt by only 0.9%.

Defense

Greece ranks seventh among the 19 eurozone countries in military spending per capita. Without it, annual military spending per person would have been 0.4% higher in 2014.